Online attacks on digital infrastructure, systems, organisations and consumers are costing SA 1% of its GDP, says cybersecurity firm Check Point Software Technologies.
In its 2024 “African Perspectives on Cybersecurity” report, the firm said there was an “urgent need for stronger defences amid rising cyberthreats across the government, education and finance sectors”.
According to the report, the growing use of digital tools and systems for business and everyday life on the African continent, while largely positive, does open up bigger risks regarding cybersecurity.
Africa’s GDP is projected to reach $4-trillion by 2027, with digital infrastructure being a cornerstone of economic progress. However, this rapid digitalisation has seen nations such as SA, Kenya, Nigeria and Morocco facing targeted attacks.
Check Point said SA had 3,312 attacks weekly on government entities and had seen a 90% surge in ransomware, resulting in cybercrime costing the country about 1% of its GDP.
This would amount to about $3.8bn (R69bn), using World Bank figures for 2023.
Estimates on the effect of cyberattacks do however vary greatly. In early 2023, the Council for Scientific and Industrial Research (CSIR) estimated cybercrimes cost SA about R2.2bn annually.
One of the biggest reasons for the variations has to do with an unwillingness by organisations — public and private — to admit when they’ve been breached, for fear of reputational damage or loss of trust by customers.
Hendrik de Bruin, head of Southern African Development Community (SADC) security consulting at Check Point told Business Day that the effect on the economy came from a combination of factors such as lost business, stolen funds, cost of recovering stolen data, cost of restoring systems, reputation loss and downtime caused by a breach or attack.
He said despite the economic consequences, spending on systems to mitigate the risk was far lower than it should be.
This is backed by data from PwC, which said some of the most damaging data breaches in the past three years had cost SA organisations $1m-$20m. Yet, less than a third of SA organisations expected to increase their cyberbudgets by 6%-10% in 2025.
This is according to the latest findings from PwC’s “Global Digital Trust Insights Survey 2025: SA” report.
The issue is, however, steadily rising in the ranks of concern among local business leaders.
“The financial and reputational damage caused by data breaches underscores the necessity for comprehensive security protocols and continuous monitoring to detect and respond to breaches promptly,” said Johan Pretorius, cybersecurity partner at PwC SA.
“While some organisations have managed to avoid being breached, our survey findings indicate that this remains an ever-present threat, necessitating ongoing vigilance and investment in cybersecurity.”
While cyberattacks continue to grow in SA, Check Point reveals a worse state of affairs in other parts of the continent.
Kenya, for example, experiences 4,719 attacks a week on the government sector, “reflecting an urgent need for strengthened defences”. The cybersecurity sector is growing by 20%-25% annually, fuelled by investments in infrastructure and Al-driven solutions.
In West Africa, Nigeria faces 4,718 attacks a week. In a recent incident, a banking trojan attack compromised 100,000 customer accounts and resulted in $3m in losses.
Morocco is experiencing 8,733 attacks a week on government organisations, giving it the dubious title of one of the most targeted nations in Africa. Its government recently faced a cyberattack that compromised classified communications, raising significant national security concerns.
Check Point highlighted the need for collaboration between the public and private sector to address cybersecurity challenges, with investments in Al-driven threat detection and continuous monitoring as “essential steps to managing cloud and hybrid environments effectively”.
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